SINGAPORE, 05 AUGUST 2008 - Business intelligence software and predictive analytics firm SAS has bought IDeaS, a revenue management vendor that specialises in the global hospitality sector.
The key attraction for SAS is IDeaS’customers, who include Shangri-La Hotels and Resorts, Ascott Group, Fairmont/Raffles, Oberoi, Hilton, Hyatt International, Mandarin Oriental, The Venetian Hotel and Casino Macau, Pan Pacific and Wynn Macau.
With 200 employees worldwide, IDeaS has Asia Pacific headquarters in Sydney, offices in Singapore and Delhi. It also has a team of 100 at its centre of Technical Excellence based in Pune, India. Twenty-three per cent of IDeaS’ global business is generated from the Asia Pacific region, with China and India growing significantly.
Wholly owned subsidiary
IDeaS will become a wholly owned subsidiary of SAS and continues to operate under the current management.
IDeaS delivers its solutions via a software as a service model. Customers access applications over the Internet, eliminating the cost of installing new hardware and software. Software upgrades are painless, as IDeaS can make the changes on its Internet host.
According to SAS, the revenue management system now permeates the hospitality and travel sectors, taking limited perishable resources, predicting consumer behaviour and adjusting pricing to maximise profit. One example is business hotels offering deep discounts for weekenders to encourage bookings for soft demand days.
“Effective revenue management is an essential tool, process and discipline for nearly all asset managers who serve customer demand that varies by market segment, season and economic cycle,” said Bill Carroll, Senior Lecturer at Cornell University School of Hotel Administration. “Getting it right can make the difference between profitability and non-profitability.”
A perfect fit
“SAS is a perfect fit for IDeaS. Customers of neither company are locked into long-term licenses, so we both have to earn our customers’ business on a daily basis,” said Ed Booth, CEO and Chairman of IDeaS.
“We have sought for some time to expand our scope beyond hospitality applications and SAS, with a corporate culture remarkably similar to ours, will provide IDeaS with the resources to stretch its wings.”
